Our Super-Patriotic Oil industry to fight Congress over royalty payments

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Oil industry to fight Congress over royalty payments
By Sheila McNulty in Houston
Published: March 13 2006 23:43 | Last updated: March 13 2006 23:43

As the US oil industry prepares to defend itself on Tuesday against political attacks on high fuel prices, one senior executive has dubbed some members of Congress “hypocritical” for seeking to reduce, or possibly end, a system allowing oil and gas producers to pay lower royalty payments.

Members of Congress who object to a 1995 law providing for relief on royalties to encourage domestic production amid low energy prices say that, with oil now near $60 a barrel, such incentives are no longer needed.
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Some members of Congress have expressed outrage at Interior Department estimates that up to $66bn in oil and natural gas projected to be taken from the Gulf of Mexico through 2011 will be exempt from royalty payments. This is expected to cost the government $7bn to $9.5bn, based on current production and price projections.

http://news.ft.com/cms/s/6964e00a-b2ea-11da-ab3e-0000779e2340.html